–European Recession:Ed Yardeni worries about the effects of recession on Europe. “Particularly unsettling yesterday were massive and widespread anti-austerity protests across Europe. The strikes and demonstrations, some involving hundreds of thousands of people, hit more than 20 countries in the EU, disrupting airports and ports, closing roads and public transportation, and shutting some essential services. The biggest protests were in Portugal, Spain, Greece, and Italy. The union-led protests–called “European Day of Action and Solidarity”–were mostly peaceful, but turned violent in Lisbon, Madrid, and Rome. September was a bad month for European output. Industrial production in the euro area fell 2.5% m/m, with sharp declines in Germany (-2.1), France (-2,7), Italy (-1.5), and Spain (-5.1). During the month, there were also big drops in Greece (-9.0), Portugal (-12.0), and Ireland (-12.6). Output in the UK has been hovering around its lows of early 2009 for the past few months. “

–Tax Cuts:Chuck Marr notes that middle-class tax cuts also benefit the wealthy. “The so-called “middle-class Bush tax cuts” also benefit high-income people. So, if the House were to approve the Senate-passed bill to extend the middle-class tax cuts (as the President favors), “that would prevent any tax hike whatsoever on the first $250,000 of everybody’s income,” he said at his press conference. That’s because the middle-class tax cuts do not just apply to people making less than $250,000 but to incomes — for everybody — up to $250,000 ($200,000 for singles). In fact, as this chart based on Urban-Brookings Tax Policy Center data shows, extending the “middle-class” tax cuts would be worth about $12,000 next year to people making between $200,000 and $500,000.”

–Rising Rents:Diane Swonk points out factors contributing to rising prices. “Consumer prices edged up 0.1% in October, with shelter (rents) rising at the fastest pace since March 2008. Airfares also surged but have fallen a bit in the wake of Sandy as air carriers scrambled to recoup business lost during the devastating storm. Vehicle and energy prices dropped, a trend that should continue and help mitigate pricing pressures in the months to come. The overhang of oil production is particularly large and suggests some fairly substantial declines, barring another major conflict in the Middle East.”

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